EV bought a 70 per cent stake in the Parag copper-molybdenum project from Peruvian-based GeoAndina Minerals 14 months ago, before launching a charm offensive with the local community to expedite the drilling permit process. The strategy proved highly successful, resulting in agreements with surrounding communities for a five-year period, along with a commitment to local investments.
A 2000m diamond drilling campaign then officially started in January and revealed high-grade copper and molybdenum intercepts from the Trinchera Este breccia in the eastern section of its leases, in addition to significant intercepts in adjacent porphyry intrusive rock, suggesting a shallower porphyry system than was initially believed.
The presence of silver in notable quantities also raised interest, especially given that prices are trading at more than US$30 (AU$44.5) per ounce, spurring the company to reinvestigate the metal in historical drill cores.
Drilling to date has tested six outcropping breccia structures, with Trinchera Este being the smallest. The company says evidence of mineralised porphyry intrusive rocks extending to the Paylacocha breccia, 1200m westwards, points to the potential scale of the system.
It now plans to integrate its newly-gathered geophysical data with historical information to help it define further drill targets and unlock the full potential of the Parag porphyry system.
Internally, management has also turned its thoughts towards a strategic partnership to fund its ongoing exploration and resource definition activities at Parag, especially given the potentially increased size of the project.
EV appears to have a new spring in its step with what it says is confirmation that Parag is indeed a copper-molybdenum-silver porphyry system, possibly of considerable size.
With copper prices at US$9673 a tonne (AU$14,362) and nipping at the heels of US$10,000 tonne, molybdenum quietly making gains and silver prices running riot in concert with the currently rampaging gold price, the company may start to catch the eye of the smart ASX punters.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
